Latest Stories

Are Mergers and Acquisitions Driving Corporate Issuance?

By James Faunce | April 28, 2016

Corporate mergers and acquisitions (M&A) continue to be a significant driver of the investment grade corporate bond market new issue calendar. As shown in today’s chart, M&A activity made up almost 35% of non-financial issuance in 2015, making it an all-time record total supply year. 2016 is on a similar pace.

All Eyes on the Central Banks This Week

By David O'Malley | April 25, 2016

Markets across the globe will be focused on the European Central Bank (ECB), Bank of Japan (BOJ) and the Federal Reserve (Fed) this week. With sluggish global growth and negative interest rates on the top of economist’s minds, this week’s announcements will be closely scrutinized.

Gold and Cyclical Inflationary Pressure

By Zhiwei Ren | April 21, 2016

The correlation between gold and the S&P 500 Index tends to be negative in a crisis, but, during a bull market, it averages a correlation around 0.4. This low/negative correlation helps to demonstrate the diversification benefits of gold. But low correlation is not the only reason to buy gold.

Credit Spread Tightening Gives the “All Clear” for Equities

By David O'Malley | April 18, 2016

For the better part of the last year, I observed credit spreads acting as a good leading indicator of equity and risk market price moves. If this correlation holds true, then the recent strong performance of investment-grade and high yield credit bonds could indicate more upside for equities is ahead.

Identifying Opportunities in the Student Loan Debt Market

By Mark Heppenstall | April 14, 2016

Student loan asset-backed securities (ABS) was the worst performing sector of the securitized fixed income markets during 2015, but a research report published last year by the Federal Reserve, “A Trillion Dollar Question: What Predicts Student Loan Delinquency Risk”, identifies a number of variables which help predict future student loan delinquencies.

Insights on the Market and Economy

By David O'Malley | April 11, 2016

While I enjoy reading Warren Buffet’s report each year, since the financial crisis I believe that JP Morgan CEO, Jamie Dimon’s letter is absolutely essential reading.

Competition Heating Up for Automobile Technology

By Trevor M. Williams | April 7, 2016

This excitement surrounding Tesla’s announcement of its Model 3 highlights an automotive arms race that is starting to heat up. According to CB Insights, in 2015, investors deployed $409 million of venture capital in auto tech companies across a record 41 deals.

Dovish Fed and Strong Employment

By David O'Malley | April 4, 2016

The highlights of last week were the dovish comments by Federal Reserve Chair Janet Yellen and the solid March employment report.



Disclosure Statement

This blog post is for informational use only. The views expressed are those of the author, Dave O’Malley, and do not necessarily reflect the views of Penn Mutual Asset Management. This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Any statements about financial and company performance of The Penn Mutual Life Insurance Company or its insurance subsidiaries (each, “Client”) made by the author is provided with a written consent from the Client.  Penn Mutual Asset Management is a wholly owned subsidiary of The Penn Mutual Life Insurance Company.

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Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

Investing involves risk, including possible loss of principal.  Past performance is no guarantee of future results.  All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.

High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.

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